Off the plan property purchases (often apartments) are quite common these days in Sydney and similar markets. Ordinarily one would sign the purchase agreement now and completion/settlement can be 1, 2 or 3 years away. If on settlement the property value has increased above the purchase price, and this is confirmed by the bank's valuer, how does the lender calculate the "V" in the LVR ratio? Is this the purchase price according to the purchase contract, or the valuation upon site valuation by the valuer? If it is the latter, is it then possible to borrow 100% of the purchase price, and yet satisfy the 80% LVR requirement if the value on valuation date is higher than purchase price?